Preparing the statement of cash flows—direct method
KSG, Inc., accountants have developed the following data from the company’s accounting records for the year ended June 30, 2012:
a. Purchase of plant assets, $57,400.
b. Cash receipt from issuance of notes payable, $48,100.
c. Payments of notes payable, $45,000.
d. Cash receipt from sale of plant assets, $23,500.
e. Cash receipt of dividends, $4,300.
f. Payments to suppliers, $371,300.
g. Interest expense and payments, $13,500.
h. Payments of salaries, $92,000.
i. Income tax expense and payments, $38,000.
j. Depreciation expense, $56,000.
k. Collections from customers, $607,000.
l. Payment of cash dividends, $45,400.
m. Cash receipt from issuance of common stock, $65,900.
n. Cash balance: June 30, 2011, $39,300; June 30, 2012, $125,500.
Requirement
1. Prepare KSG’s statement of cash flows for the year ended June 30, 2012. Use the direct method for cash flows from operating activities.